Site work approved for possible expansion of Chattanooga VW plant

A city panel today agreed to finalize site work on a pair of tracts adjacent to Volkswagen's Chattanooga auto assembly plant, prepping the land should VW decide to expand in the future.

"It will be site ready," said Steve Leach, the city's public works administrator.

The city's Industrial Development Board agreed to spend up to $7.52 million in state funds for the work. One tract is located immediately next to the plant where VW officials have talked about potentially mirroring the existing factory. The other parcel is adjacent to VW's nearby supplier park and could hold future suppliers for the German automaker.

Leach said the site work is expected to be done by the end of this year.

City Engineer Bill Payne said no plant expansion announcement is imminent. But, VW is weighing the production of a new sport utility vehicle introduced at the Detroit auto show last month.

Chattanooga has been identified as a potential production location if the company decides to move ahead with the SUV.